Saturday, July 17, 2010


Along with admitting that the National Health Care Insurance is a TAX (see my previous post, Nat'l Health INS A TAX) , the IRS is now complaining that there are not enough IRS employees and not enough allocated monies for the required work the IRS must now do to comply with ObamaCare. Lost in Taxation is from the on-line version of the "Wall Street Journal".
[W]ith ObamaCare, the agency is now responsible for "the most extensive social benefit program the IRS has been asked to implement in recent history." And without "sufficient funding" it won't be able to discharge these new duties.
Nina Olson is the IRS National Taxpayer Advocate.
Ms. Olson also exposed a damaging provision that she estimates will hit some 30 million sole proprietorships and subchapter S corporations, two million farms and one million charities and other tax-exempt organizations. Prior to ObamaCare, businesses only had to tell the IRS the value of services they purchase. But starting in 2013 they will also have to report the value of goods they buy from a single vendor that total more than $600 annually—including office supplies and the like.
.Not only will the size of the IRS and its Budget increase, the burdens placed on these 33 million business, farms and charities will be a job killer.
Ms. Olson says that the tracking costs for small businesses will be "disproportionate as compared with any resulting improvement in tax compliance."
With fewer dollars of profit due to additional expenses of compliance, fewer jobs will be created or saved.

If the unintended consequences of National Health Care are not already enough, here is another unintended consequence.
Meanwhile, the IRS will be inundated with useless information, because without a huge upgrade its information systems won't be able to manage and track the nanodetails.
Summary, National Health Care Insurance is a TAX. A TAX on everyone (not just the rich), which will cost more and kill jobs (except at the IRS).

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